Mon Dec 02 10:22:09 UTC 2024: ## Stellantis CEO Carlos Tavares Resigns Amidst Shareholder Disputes

**Paris, France – November 30, 2024** – Stellantis CEO Carlos Tavares unexpectedly resigned on Sunday, sending shockwaves through the automotive industry. The resignation follows weeks of escalating tensions between Tavares, the board of directors, and major shareholders over differing strategic visions for the company.

According to a statement released by Senior Independent Director Henri de Castries, these diverging views ultimately led to Tavares’ departure. The board, including Chairman John Elkann, accepted the resignation with immediate effect. An interim executive committee, chaired by Elkann, will be formed while the company searches for a replacement CEO, a process expected to conclude in the first half of 2025.

Tavares’ leadership, once highly regarded, came under scrutiny recently. Falling sales in North America resulted in a profit warning for 2024, forecasting a potential €10 billion ($10.6 billion) cash burn due to slow sales and excess inventory. This prompted a management shake-up, including changes to the CFO and head of North American operations.

While Tavares had previously indicated he wouldn’t seek a new term, ending his tenure in early 2026, sources suggest tensions intensified after the board perceived his focus on short-term solutions as detrimental to the company’s long-term interests. Analysts at Bernstein noted that the abrupt resignation highlights the severity of the rift.

Tavares, who has led Stellantis since its formation in 2021, oversaw 14 brands. His assertive style, however, has resulted in conflicts with US unions and the Italian government over production decisions. The UAW has threatened a strike, alleging Stellantis has not upheld contractual commitments, a claim Stellantis denies.

Stellantis’ stock has plummeted by 40% this year, contrasting with competitor Ford’s 7% decline and General Motors’ 55% rise. The search for a new CEO will be closely watched as the company navigates these challenges.

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